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Progressive View: Socialize Debt To Grow The Economy

Socializing debt is certainly not a new concept. Who among us. who has ever bought a house, did not take advantage the mortgage interest deduction when itemizing our tax returns? What a great deal! Those who rent and the rich who buy theirs house for cash are forced by law to help us payoff our mortgages. The real estate industry lobbies hard in support of the mortgage interest deduction by arguing the housing industry is a main driver of our economy.

Now, as reported by Investors Business Daily, we learn that the paragon of progressive virtue and faux indian princess, Sen. Elizabeth Warren, has introduced a bill to have the taxpayers share the burden of paying off the mountain (over a trillion dollars) of student loans. Here is her “brilliant” argument:

Warren argues the new government entitlement will be great for the economy: Student debt is “keeping young people from buying homes, starting families, starting small businesses and growing our economy.”

Yup! The ol’ take money out of one part of the economy and stick in another part of the economy and call it growth. Pffft! If Lizzy believes that, then she must also believe that if she put a barrel full of water next to her flower garden and stood there all day taking a dipper of water from one side of barrel and putting back on the other side of the barrel that pretty soon the water will overflow the barrel and irrigate her garden. Good luck with that, Lizzy!

Of course, Barry has jumped on Lizzy’s bandwagon; just ike he did on Lizzy’s “You didn’t build that” meme. But, not because he thinks the bill will pass. He’s sure it won’t pass. But, it gives him the perfect opportunity to go into full Alinskey Class Warfare mode just in time for the coming elections. Barry says the cost of the bill can be paid with a “millionaire’s tax”. And, as usual, he dares the Republicans to vote in favor of the millionaires and against the middles class:

“I want Americans to pay attention to see where their lawmakers’ priorities lie here: lower tax bills for millionaires or lower student-loan bills for the middle class?” Obama said. “This should be a no-brainer.”

Well, we have to admit that Barry is the undisputed expert on “no brains”.

What if the bill should pass? The Republicans are not called the Stupid Party without reason. And, if it does pass, where does the nonsense end? Why not a bill to socialize the sub-prime auto loan debt? After all, getting more people to buy cars is good for the economy and supports those high paying auto-worker jobs. And, why not go for the golden ring? Consumer spending accounts for about 70% of the GDP, in America, right? So, let’s socialize credit card debt!

As Lizzy and Barry will tell you, the rainbow-colored unicorns are just over the horizon.

I wonder what unicorns do with those big screws coming out of their heads? … Ouch!

18 thoughts on “Progressive View: Socialize Debt To Grow The Economy”

I ask that a law be passed subsidizing those who have blogs. Let the evil Republicans side with those who do not have blogs. Yes I’m joking but it’s such a stupid idea I’m surprised the Democrats haven’t thought of it. After all, don’t blogs drive the intellectual economy?

I’m thinking that if the liberals (such as Obama and Warren) are finally willing to admit that their federal loans have been driving us into debt slavery, maybe we can finally end the federal student loan programs?

“We believe that students are entitled to get an education without being crushed by debt.”

I can sort of agree with half of that! (The government shouldn’t be in the business of crushing anyone with debt, but “entitlement” is a pretty bad road to start down…)

I can’t believe that picketing alongside fast-food workers makes it into her top ten core principles. I guess it’s sort of an admission that she doesn’t have a list of core principles here, she has a list of bullet points that she thinks will play well politically.

That’s always the progressive way. Give everybody everything. Don’t expect people to have to earn what they want in life. I worked my way through under-graduate and graduate school. It took me five years to payoff my debts. I never asked for any help and certainly not from America’s taxpayers.

BTW, Jersey, you should read the article linked in the comment by Chillingworth. It’s by one of your own, Matt Taibbi at Rollinstone Magazine. He get’s it.

My son and I, being of the white middle class male persuasion and neither expecting nor asking for handouts, paid off his under graduate and graduate school loans within three years of receiving his masters degree. Once the gov’t goes full throttle with its plan for socialized education the degrees won’t be worth the toilet paper they will be printed on.

You guys are wrong. Countries with strong support of higher education have great educational institutions. Profiteering from our children’s education, strapping them with debts far, far beyond what grads and undergrads experienced in the past, is not improving our education system, or our country. You guys are just shills, useful idiots, of the banks.

I think the idea might have to do with there being something special about student debt, something that is not true for housing, consumer or automotive sectors. It could be connected with attaching to higher education a special social value such that it is no longer regulated by a strictly free market. Education could be something that we value so much that we help our citizens to get it.